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Why YOU Should Care
If you pay more than half the cost of maintaining a household that is the home of a qualifying person for more than half the year, you may qualify for Head of Household status. This status has more-favorable rates than filing Single or Married Filing Separately. You will also qualify for a larger standard deduction. This can reduce your overall tax bill.
Head of Household Qualifications
In order to qualify to file under the Head of Household status, you must:
- You are unmarried or considered unmarried at year-end.
- You pay more than half the cost of maintaining a home for the year.
- A qualifying person (qualifying child or relative) lives in that home with you for more than half the year.
“Considered Unmarried”
Typically, if you are legally married as of the last day of the year, you must file using a marital filing status for that year. However, an exception exists for individuals considered unmarried for tax purposes based on their circumstances. You may qualify as Head of Household when you are still legally married, if:
- You file a separate return from your legal spouse.
- You pay more than half of the cost of maintaining your home for the year.
- Your legal spouse did not live in your home with you for at least the last six months of the year.
- Your house was the main home of a qualifying person.
- You must be able to claim an exemption for the child unless the only reason you cannot is due to a certain custodial or support arrangement. Speak to your tax adviser if you are unable to claim the exception for the child and you’d like to qualify for Head of Household status.
What are the costs of “Maintaining a Home”?
The costs of maintaining a home include:
- Rent or mortgage
- Renter’s or Homeowners Insurance
- Property tax
- Utilities
- Maintenance
- Food eaten at home
Costs such as education, clothing, and transportation are not considered costs of maintaining a home.
Who is a “Qualifying Child”?
To claim Head of Household status, your home must be the home of a qualifying person for at least half of the year. The most common qualifying person is a qualifying child. This definition includes the following unmarried individuals:
- Son or daughter,
- Stepchild,
- Foster child, or
- any descendant of the above (i.e., your grandchild)
At the end of the year, these children must:
- Be under age 18,
- Be under age 24 if a full-time student, or
- Be disabled
The requirement that the child live in your home is not impacted by temporary absences for education, medical attention, or military service. In addition, a child who is born or dies during the year is considered to have met the residency requirement if your home was where he or she lived for more than half the time he or she was alive during the year.
Who are “Qualifying Relatives”?
The following people can qualify if they live with you for more than half the year AND you can claim an exemption for them on your tax return:
- Your married child
- Your mother or father
- Your grandparents
- Your siblings (including step- and half-siblings)
- Your in-laws
There is a special rule for your parents if they do not live with you because they live in retirement home or community for the elderly and you pay the cost of maintaining this residence.
There is no age test for qualifying relatives.
